Khan Resources has plunged today on a news release about their Mongolia property.

However we are treating this as an opportunity to purchase more shares and perhaps make a short term trading profit on Khan.We have just bought at $1.70 per share, please stay tuned for updates. Khan is down 30-40% today on this news so this is not for the faint hearted. Nonetheless we are flashing an additional BUY on Khan as of now to take advantage of this pullback.

We then closed our short-term trade on the 27th August 2007 but kept all of our previous purchases as part of our core holdings and said the following:

Today we decided to sell at the higher price of $1.96, in order to close this position. This gives us a profit of $0.26 or 15.29% in 10 days. We are happy to take this profit as it was generated over a short time span. The downside could have been that the stock did not recover so quickly and we would have had to hold Khan for longer. That’s not a problem for us as we like the stock very much and still hold their shares as part of our core holding in uranium stocks.

Hope that you made a few dollars from this trade.

Khan are making some head way with the Mongolian Government as we can see by today’s news release and the fact that the stock price has gained $0.79 or 46.2% as we write.